The Boston Globe published an article today talking about the impact Facebook will have as a publicly traded company on Wall Street.
Here is an excerpt of the article:
“Facebook could file to go public as soon as tomorrow, and its offering could raise up to $10 billion — enough to revive a tepid market for Internet stocks, analysts said, and seed the ground for future offerings from social media companies like Twitter or Yelp Inc. Facebook’s market value may reach $100 billion, placing the social media giant on par with such corporate titans as General Motors Co. and Visa Inc.
Initial public offerings from social media companies have been underwhelming. The daily deal site Groupon Inc., professional networking service LinkedIn Corp., and online game maker Zynga Inc. all went public in 2011 to great hoopla, but with disappointing results. Groupon has been trading barely above its $20 opening price, and shares in Zynga, which raised $1 billion when it went public in December, only recently fetched more than their $10 debut price. LinkedIn soared after its market debut in May, doubling in price on its first day of trading, but investors have since cooled on the company’s stock.
So far, the markets have been skeptical about the long-term growth potential of these social media newcomers to Wall Street…”
Read the complete piece by going to this website.